Tobacco has always been an imported, and thus taxed commodity here. Even when NZ had its own tobacco belt there were laws limiting the amount of domestic tobacco which could be sold/blended, I think it was something like 4%, which is stupid as it grows incredibly well. So tobacco smuggling has always occurred, and in some cases is celebrated.
There is a great article about it at our museum. Local farmers used to do a baccy run to the mines on the west coast. To avoid confiscation they had to either make new roads, or hide it on their trucks for the checkpoint. My favourite story is when they knew a guy was carrying tobacco but they couldn’t find it as he used his second fuel tank as the hiding spot. Another filled his trucks tyres with ropes.